1. Field of the Invention
This invention pertains generally to methods for optimizing revenue or profit of a gambling enterprise and, more particularly, to such methods for optimizing revenue or profit generated by gaming units on a casino floor.
2. Background Information
Gambling enterprises, such as casinos, generate gaming revenue in many ways and from many sources. These can include, but are not limited to, the operation of table games, electronic gaming devices (EGDs) such as slot machines, video lottery terminals (VLTs), video poker machines, keno, bingo, pulltabs, race and sports wagers, as well as other forms of gaming that occur on the casino floor. However, table games and EGDs produce the largest percentage of gaming revenue and profit for most casinos and are areas of particular interest and scrutiny by casino managers.
Additionally, the size of a casino floor is generally constrained either by direct regulation, which restricts total space, or practical or monetary considerations on the part of the operator. The amount of space available to a casino operator within which to generate revenue and profit is therefore finite. Casino operators thus wish to strive to optimize revenue and profit in gaming operations given this limited available floor space.
Gambling enterprises use various types of casino management systems (CMSs) to provide information on activity generated from gaming activities. A CMS gathers data on money wagered at gaming units throughout the casino, with information available generally on a daily basis, although some CMSs provide information of even greater detail (e.g., by hour; by shift).
Additionally, casinos utilize various financial reporting systems (FRSs). Information from the CMS is often used by the FRS in developing financial statements and creating financial reports on gaming departments. These statements and reports provide casino managers with information on the overall revenue performance (“win”) from gaming and other sources at the casino property, as well as costs associated with operating these departments, since the FRS is also often the primary repository of information on expenses throughout the property. Information is often provided grouped by broad category (e.g., casino; hotel; food) as well as by sub-category or department (e.g., table games; EGDs; casino cage (e.g., an area on the casino floor where financial transactions are completed to serve the needs of the patrons on the gaming floor as well as to provide cash, coin, and chip resources to the gaming units in operation on the gaming floor; patrons may, for example, cash checks, change currency for coin or redeem chips won at a table game at the casino cage); rooms; food outlet A; food outlet B).
Aside from preparing financial statements, data from activities on the gaming floor are also collected to assist the marketing department in performing various analyses. It is standard practice in the industry to establish systems for collecting and tracking customer activity at casinos for use in customer recognition and marketing programs, the goal of which is to attempt to generate as much customer visitation as possible. The presumption is that more customer visits will tend to generate more gaming time and will increase gaming revenue. Thus, casino operators have tended to focus their effects on determining ways to increase visitation through loyalty programs or promotions to selected higher worth customers, as determined by a customer database analysis. See, for example, U.S. Pat. No. 6,003,013.
It is known to control the cost of playing an individual electronic gaming device (e.g., slot machine; video poker machine) by configuring game speed, payback percentage, and game appearance. See U.S. Pat. No. 6,254,483.
It is also known to allocate different games to various game machines based upon time periods, dates, type of players or the traffic line of players, without the replacement of the game machines. See U.S. Pat. No. 6,354,943.
It is further known to manage gaming tables in a gaming facility by determining the performance of dealers and by estimating the revenue for each gaming table. See U.S. Pat. No. 6,446,864.
It is also known to employ a casino drawing/lottery game to attempt to maximize gaming revenues by influencing which kind of games players play. See U.S. Pat. No. 5,129,652.
It is further known to increase revenues by offering a relatively more attractive loss ratio, while incurring essentially the same fixed costs for a gambling operation. See U.S. Pat. No. 6,500,066.
There is room for improvement in methods for optimizing revenue or profit of a gambling enterprise.